Arrow Electronics (ARW) investor relations material

Executive summary

• Q2 2025 consolidated sales rose 10% year-over-year to $7.58B, with both Global Components and ECS segments exceeding guidance and strong ECS performance.

• Net income attributable to shareholders increased 73% to $188M, driven by investment gains and strong segment results.

• Non-GAAP diluted EPS was $2.43, above guidance but down year-over-year; GAAP EPS was $3.59, up 79%.

• Foreign currency changes positively impacted sales and EPS compared to Q2 2024.

• Share repurchases totaled $50M in Q2, with $223M–$225M remaining authorized.

Financial highlights

• Q2 2025 sales reached $7.6B, up 10% year-over-year; non-GAAP gross margin was 11.2%, down 110 bps year-over-year.

• Non-GAAP operating income was $215M (2.8% of sales), down 17.8% year-over-year; operating margin was 2.5%.

• Net income (GAAP) rose 73% to $188M; non-GAAP net income was $127M.

• Operating expenses increased 3.8% year-over-year to $658M; non-GAAP opex margin improved to 8.3%.

• Operating cash flow for Q2 ranged from negative $206M to positive $252M; cash at quarter-end was $222M.

Outlook and guidance

• Q3 2025 consolidated sales expected between $7.3B and $7.9B; Global Components $5.3B–$5.7B; ECS $2.0B–$2.2B.

• Q3 non-GAAP diluted EPS guidance: $2.16–$2.36; GAAP EPS: $1.49–$1.69.

• Tax rate expected at 23–25%; interest expense around $65M.

• Foreign currency expected to increase Q3 sales by $135M and EPS by $0.11.

• Operating Expense Efficiency Plan targets $90–$100M in annual savings by end of 2026.